I’m Behind on My Mortgage Payments in Philadelphia – What Do I Do?

I’m Behind on My Mortgage Payments
Behind on your payments? Read this article for a few tips on what you can to do prevent and avoid foreclosure in Philadelphia.

When you fall behind on your mortgage payments in Philadelphia, it can feel like you’re drowning in debt. How do you ever come back from that? Can you catch up on them?

Even if you’re able to make your monthly payment, catching up on a past due balance can be an overwhelming challenge. Much more daunting that just catching up on some pesky credit card bills – this is your house, your homestead, your residence! So what should you do if you’re “behind on my mortgage payments in Philadelphia“?

There are a few options that can help you to avoid foreclosure in Philadelphia and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Philadelphia have been lost to foreclosure, but there are many ways to avoid it.

Help, I’m Behind on My Mortgage Payments in Philadelphia!

5 Things You Can Do To Help Your Situation

1. Bankruptcy:

This is usually the tool of last resort. If you’re being crushed by lots of debt, bankruptcy can be a good way to negotiate with lots of lenders at once. Think consolidation. It’s a lot of work, and it won’t help you avoid your mortgage. Different lenders will treat your circumstances in unique ways. You’d benefit from serious professional help – the best you can afford. Hire a professional attorney to walk you through your bankruptcy options.

2. Reaffirm:

This can be a good card to play, but it may come with some unseen penalties. Basically, reaffirming the loan is an additional commitment to pay. In some states where it’s allowed, an affirmation can create additional liabilities if your property is auctioned.

3. Making Home Affordable (MFA):

If your mortgage qualifies, you might be able to participate in MHA. Any loans backed by Fannie Mae or Freddie Mac must be considered for MHA, and other lenders choose to participate in MFA.

With MFA, your payments and/or interest rates might be lowered – even the principal balance (if your home is worth less than you owe). If you’re unemployed, you might be able to get your payments temporarily suspended or reduced.

MFA is a government program, so be prepared to deal with lots of paperwork. It ain’t free money – you gotta work for it.

4. Negotiate with your bank:

Lots of lenders routinely offer some level of assistance. You have to work hard at it, but you might be able to get your interest rate reduced or a temporary reduction in your payment. It doesn’t hurt to ask.

Most of the time when you tell the bank “I’m behind on my mortgage payments”, they will want to steer you to refinance your loan – but by the time you’re a few payments behind, you probably don’t qualify for a reduction in interest rate.

You have to work really hard to negotiate with a bank. Usually, it takes lots of calls and the patience of a saint to get through the bureaucracy. Never, ever act rude. Ask for help from everyone you speak with, but don’t sound desperate. Explain your situation, offer supporting documents, and reassure the bank that you want to live in your home for the long term. Remember, all the banks and lenders want is a borrower in place to pay the loan over time with interest. They really don’t want to have to repossess the property or kick you out.

If you’re in need of a temporary fix and want to stay in your home, most banks can be forgiving. Sometimes they’ll be willing to add a few months of payments back onto the primary balance of your loan. It’s all dollars and cents to them, so remind them that you need their help to give them a lot more money in the long run. If they have to sell your house at a foreclosure auction, they’ll take a huge loss.

That sounds obvious, but for some reason, bankers seem to forget it when saying no to someone in need of help.

5. Borrow money from a private investor:

If you’re behind on your payments and need to sell fast, we can help.

In certain circumstances, we may even be able to help you stay in your home.

We work with homeowners in Philadelphia to find solutions to foreclosure problems.

Our investments work all over the city of Philadelphia. We work with homeowners in Fishtown, Northern Liberties, Manayunk, Roxborough, Whitman, South Philly and many more.

We’ll let you know how we can help.

Give us a call now at (267) 225-6311 or
fill out the form on this website to get started.

Doug Greene

Doug Greene is a creative real estate investor, master content curator and evangelist for easier, better and more enjoyable real estate experiences for all. He owns Signature Properties, a Philadelphia real estate company that solves unique problems for homeowners and investors. His work has been featured on Yahoo Finance, AOL, Family Handyman and many more authoritative publications.

Get More Info On Options To Sell Your Home...

Selling a property in today's market can be confusing. Connect with us or submit your info below and we'll help guide you through your options.

Get Your Cash Offer Today!

  • This field is for validation purposes and should be left unchanged.

Leave a Reply

Your email address will not be published. Required fields are marked *